Rework tends to pose major challenges with steel businesses involved in manufacturing, fabrication and building. Having a direct impact to the bottom line, quality defects resulting in rework or scrap are a tremendous cost to steel businesses. Associated costs include quarantining inventory, re-inspecting, rescheduling, and capacity loss. In many steel businesses the total cost of defects is often a significant percentage of total manufacturing cost. Through employee involvement and Continuous Improvement we have found there is a huge opportunity to reduce defects for our customers.
The Steel Efficiency Review® process recommends operations and productions teams to make what the customer wants driven by standard procedures and controlled by quality standards. This will help eliminate rework and all costs associated with having to correct repeating issues and faults. We have found if you could eliminate or possibly reduce Rework the savings would be straight back on your bottom line improving the profit in your business.
Some Common Causes of Rework comprise:
- Unclear Standards And Design Specifications
- Non-Standardised Work Practices
- Training And Culture
Utilising the Steel Efficiency Review® to better understand businesses serving diverse industries, our SER® consultants have recommended the following 3 key solutions to help with Rework:
- ENABLING 5S IN YOUR OPERATIONS
5S implementation with the use of Standard Operating Procedures to provide written instructions for all of your employees. These procedures will ensure the standardisation of methods across shifts and workers, combined with on the job training they are an highly effective way to improve the quality of your product as well as ensuring the reduction in Rework.
- MEASURING QUALITY AS DETERMINED BY THE CUSTOMER
Implementing quality standards measured and determined by customer satisfaction and requirement. This will help with clarify specifications and acceptance standards by customers and projects – determining how to produce what’s needed without adding the cost of Rework.
- MOVING TO A LEARNING CULTURE
Rewarding the right behaviours by paying for quality rather than quantity will encourage to worker smart and learn to improve processes and product quality. This will reduce Rework and improve the likelihood of better products customers are willing to pay for and appreciate their value.
We have found if you could eliminate or possibly reduce Rework the savings would be straight back on your bottom line improving the profit in your business. The Steel Efficiency Review® aims to challenge this way of thinking to provide recommendations to change and improve our customer’s business and at the same time our product and service offer.
Download our State of Market Reports for our insights and learnings after completing 1,011 Steel Efficiency Review® consultations on businesses of all shapes and sizes across Australia. To register for your own FREE Steel Efficiency Review® click here.